Top 5 financial mistakes

Read this and learn about the top five Financial mistakes that many people make and which can lead to financial hardships.

Wouldn’t it be wonderful if we never made any financial mistakes, if we did everything right and made all the right decisions at the right time? Do you know what would happen, we would all wind up rich?

The only thing standing between financial independence and us is financial mistakes. 

If we could resolve to just make some changes with some of the financial mistakes we are making we could dramatically increase our net worth over a short period of time.

Here is my list of top five personal finance mistakes.

Number 1. Not paying off your credit card balance each month. This is huge right now with the credit card companies charging 29.9% on the balance plus late charges and every other kind of fee that they can think of. Only use your credit card for items that you can pay for the end of the month.

If you have been reading my articles in this blog you will know my running theme about credit cards is stop buying things you cannot afford with money you do not have.

Number 2. Taking out a home equity loan. There were so many people got into trouble with their mortgage because a couple years ago the value of the homes skyrocketed and money was so easy to get. So many people borrowed money on their homes and use it for who knows what and wound up upside down with their mortgage and then many of them lost their jobs and had huge pay cuts and were unable to make their house payments.

Number 3. Waiting too long to start a long-term investment program. It used to be that people worked for the same company for 30 or 40 years and then retired and receive a pension from that company. Not so anymore as we are now responsible for our own retirement program even though the companies will kick in for your 401(k).

Number 4. Putting all your eggs in one basket and then not watching that basket. All my life I have heard investment people say diversify. Well I think a lot of people wish now that they’ve done just that. A few years ago people would invest every penny they had in the.com companies and what happened to them? No one sector is safe in these times, not even healthcare as people who are heavily invested there are more than little bit nervous right now and rightly so.

Number 5. Holding onto investments too long. My rule of thumb is if a stock I own, no matter how good it has done in the past drops 5%, I get out real quick. I have friends who lost everything believing that what they had invested in was going to go back up in price.

Jimmy says, the next big indicator is going to be the interest rate and when interest rate goes up Jimmy gets out. Our economy right now is hanging by a thread because the government is planning money as fast as they can and when interest rates start up the market going to start down.

Whoa Jimmy?

Did everyone you know these financial increase or wants to earn more money or save money a link to this website.  www.increasenow.com

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If you have anything to add to my list of top five financial mistakes please share with our readers in the comments.